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Online installment loans have taken the subprime market by storm

bloomberg.com

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Re: Online installment loans have taken the subprime market by storm

#11

Post by entropicdrifter »

notus wrote: post #5
TylerE wrote: post #3

Earlier quoted context omitted.

I am leery of government-backed loans. Look what FHA did to the housing market and what student loans have done to the cost of college.

I'm not entirely sure what FHA did to the housing market, but as for student loans, yes it wasn't a great outcome, but it is a substantially better outcome than everyone being in debt with high interest rates with predatory lenders.

Except that student loans can't be abandoned even if you declare bankruptcy. That one little factor makes them some of the worst loans imaginable in terms of long-term prospects.

Re: Online installment loans have taken the subprime market by storm

#12

Post by MuffinFlavored »

What's HN's opinion on 0% balance transfers? Yes, there's usually a 3% fee but... I've been able to borrow about $5k-$12k for a one time 3% fee over 18 months multiple times in a row now. I make sure to always pay the balance back before it is due. Why don't more people who need a cash infusion do this?

Re: Online installment loans have taken the subprime market by storm

#13

Post by mikestew »

geggam wrote: post #9
notus wrote: post #7

Earlier quoted context omitted.

If filing for bankruptcy had no negative consequences I would agree, but that isn't the case. I agree that we shouldn't be bailing out banks, but we should have a safety net to bail out individuals. People go broke for various reasons, but the hallmark of an accomplished society is being able to ensure a decent quality of life for most people. Telling people to accept personal responsibility for everything that happe…

Disagree, You make the choices for life. Accept personal responsibility.

I’m going to assume that you’re young with limited life experience, which allows you to think that life is that clear-cut. I’d argue, but experience tells me I’ll have to wait until life decides its your turn to stand in front of the steam roller.

A much less charitable interpretation has you making convenient answers so that you can conveniently wash your hands of social responsibility. But, man, I hate think that about anyone, even anonymous internet commenters.

Re: Online installment loans have taken the subprime market by storm

#14

Post by entropicdrifter »

geggam wrote: post #9
notus wrote: post #7

Earlier quoted context omitted.

If filing for bankruptcy had no negative consequences I would agree, but that isn't the case. I agree that we shouldn't be bailing out banks, but we should have a safety net to bail out individuals. People go broke for various reasons, but the hallmark of an accomplished society is being able to ensure a decent quality of life for most people. Telling people to accept personal responsibility for everything that happe…

Disagree, You make the choices for life. Accept personal responsibility.

Financial abuse exists.

Re: Online installment loans have taken the subprime market by storm

#15

Post by S_A_P »

MuffinFlavored wrote: post #12

What's HN's opinion on 0% balance transfers? Yes, there's usually a 3% fee but... I've been able to borrow about $5k-$12k for a one time 3% fee over 18 months multiple times in a row now. I make sure to always pay the balance back before it is due. Why don't more people who need a cash infusion do this?

there is usually an asterisk next to those offers*

*well qualified applicants only...

Re: Online installment loans have taken the subprime market by storm

#16

Post by mindslight »

I'm shocked that an economy based on the median person being in debt is finding new ways to get debt into everybody's hands.

This topic is ultimately just a symptom. Focus on the larger economic design (eg rent treadmill) that precludes most everyone from saving a positive amount of wealth, rather than their needing to take on debt for emergencies.

Re: Online installment loans have taken the subprime market by storm

#18

Post by maxerickson »

MuffinFlavored wrote: post #12

What's HN's opinion on 0% balance transfers? Yes, there's usually a 3% fee but... I've been able to borrow about $5k-$12k for a one time 3% fee over 18 months multiple times in a row now. I make sure to always pay the balance back before it is due. Why don't more people who need a cash infusion do this?

They simply don't qualify.

Would you even consider a $3,000 loan at 25%? That's what's going on with these companies.

Re: Online installment loans have taken the subprime market by storm

#19

Post by geggam »

geggam wrote: post #9
notus wrote: post #7

Earlier quoted context omitted.

If filing for bankruptcy had no negative consequences I would agree, but that isn't the case. I agree that we shouldn't be bailing out banks, but we should have a safety net to bail out individuals. People go broke for various reasons, but the hallmark of an accomplished society is being able to ensure a decent quality of life for most people. Telling people to accept personal responsibility for everything that happe…

Disagree, You make the choices for life. Accept personal responsibility.

I understand the downvoters here want someone else to take care of them. Sorry.

If you want a functioning society you have to contribute. Not mooch.

In the words of JFK

And so, my fellow Americans: ask not what your country can do for you — ask what you can do for your country.

Re: Online installment loans have taken the subprime market by storm

#20

Post by notus »

entropicdrifter wrote: post #11
notus wrote: post #5

Earlier quoted context omitted.

I'm not entirely sure what FHA did to the housing market, but as for student loans, yes it wasn't a great outcome, but it is a substantially better outcome than everyone being in debt with high interest rates with predatory lenders.

Except that student loans can't be abandoned even if you declare bankruptcy. That one little factor makes them some of the worst loans imaginable in terms of long-term prospects.

Still not worse than triple digit interest rates
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